Asknet: Reports First Half 2021 Results and Continues to Implement Three-Pillar Strategy

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DGAP-News: asknet Solutions AG / Keyword (s): Half-year report

asknet Solutions AG Reports First Half 2021 Results and Continues to Implement Three-Pillar Strategy

30.09.2021 / 16:00
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asknet Solutions AG Reports First Half 2021 Results and Continues to Implement Three-Pillar Strategy

  • The gross margin, the key performance indicator for asknet activity, remains at the level of the previous year at 4.0 million euros
  • EBIT at -1.6 million euros (H1 2020: 0.1 million euros)
  • Improvement in commercial performance expected in the second half of 2021, thanks to the successful start of several new customer projects
  • Management proposes a capital increase to the Extraordinary General Meeting (EGM) of October 15, 2021

September 30, 2021, Karlsruhe (Germany) – asknet Solutions AG, a leading specialist in procurement, e-commerce and EdTech, reports its financial results for the first six months of 2021. During the reporting period, asknet Solutions AG generated gross margin at the level of the period of the previous year in the amount of 4.0 million euros. This target was achieved despite a 9.9% drop in revenue to € 35.7 million. The gross profit margin increased from 10.2% in the first six months of 2020 to 11.3% during the period considered.

In the eCommerce Solutions (eCS) business unit, the good performance of the best customers offset the still perceptible effects of the restructuring of the customer base. Total turnover was at the level of the previous year of 25.8 million euros. The gross margin slightly decreased by 1.3% to 2.5 million euros. In the Academics business unit, sales amounted to 9.9 million euros compared to 13.8 million euros in the first half of 2020. The decrease is mainly due to a significant loss of calls from offers as well as the postponement of high-turnover projects in the second half of the year. 2021. Thanks to the extension of the IBM partnership and the increase in license sales, the gross margin increased by 3.8% to 1.6 million euros.

In addition, in recent months, the company has taken important steps to implement its three-pillar strategy, presented at the annual general meeting on July 5, 2021, aimed at bringing the company to profitability and sustainable and steady growth by 2023. This includes the migration of its stores and customer portals to Amazon Web Services (AWS), which started during the reference period and is currently well advanced, increasing the competitiveness of the business by offering greater scalability and expanded cloud functionality. To further strengthen the repositioning of the Ecommerce Solutions business unit, Aston Fallen and Thomas Garrahan, longtime Asknet partners with exceptional expertise in the ecommerce market and a deep understanding of business needs, will be appointed. CEOs of eCS in October 2021. Reflecting the new approach and corporate culture of this business unit, a new eCS website was launched this week. Within the Academic Business Unit, the company is expanding in the Swiss education market with the launch of a new project with a Swiss academic client, which involves the distribution of software licenses from a major publisher. Regarding the New Pipeline strategy, asknet advanced its activities in the education market, strengthening the partnership with Blackboard during the reporting period.

Regarding the company’s profits, the first half of the year was characterized by extraordinary costs higher than initially expected. Other operating expenses increased by 7.5% to EUR 3.6 million due to legal fees related to legacy issues as well as restructuring and investment costs of strategic initiatives as part of the strategy to three pillars of the company. EBITDA amounted to -1.3 million euros compared to 0.3 million euros in the first half of 2020. EBIT amounted to -1.6 million euros compared to 0.1 million euros during the period of the previous year. The net loss amounted to -1.7 million euros (H1 2020: -0.8 million euros).

As of June 30, 2021, the company’s balance sheet total stood at 19.4 million euros compared to 31.8 million euros as of December 31, 2020. The main reason for the decrease is the reduction in liabilities. Due to the net loss for the period, a deficit not covered by equity in the amount of 0.9 million euros arose, compared to 0.7 million euros in total equity at the end of 2020.

To finance ongoing operational improvements as well as the implementation of the three-pillar strategy, including future strategic investments, asknet Solutions AG intends to carry out a capital increase by issuing up to 1,961,295 new shares, each with an amount in proportion to the share capital of 1.00 EUR and with a stock market price set at 3.50 EUR. Following the issuance, the company would receive proceeds of approximately € 7 million. The completion of the capital increase is subject to shareholder approval at the next EGM on October 15, 2021.

Christian Herkel, CEO of Asknet Solutions AG: “We have taken important steps during the reporting period to advance our plans related to the three pillar strategy. However, to fully succeed in its implementation, cash-generating investments are necessary. Approval of the renewal of the capital requirement is an important decision for our shareholders, which would allow us to implement our strategy on a solid financial footing and create profitable growth in the medium term. we believe it is absolutely necessary to proceed with a capital increase at this stage. “

Based on the successful start of several new customer projects, the company expects the business situation to improve in the second half of 2021. However, this upward trend will not fully offset the negative half-year result. For the full year 2021, management therefore expects a decrease in turnover and gross margin, leading to a profit before interest and taxes (EBIT) close to the level of the previous year.

Asknet Solutions AG’s half year report 2021 is available on the company’s website: https://asknet-solutions.com/investors/financial-reports.html

About Asknet Solutions AG
asknet Solutions AG is a renowned purchasing, e-commerce and EdTech specialist headquartered in Karlsruhe, Germany. The company offers the purchase and distribution of software for European universities and is the undisputed market leader in Germany (Academics business unit). Asknet’s portfolio includes a wide range of high-quality software applications for the academic sector, ranging from IBM SPSS to Adobe Creative Cloud. By continually expanding its portfolio beyond software procurement through partnerships with leading software manufacturers such as Blackboard and Dell, asknet aims to become the leading provider of IT services in the European education market. The company also develops and manages online stores for digital and physical products around the world (eCommerce Solutions business unit). Leading global publishers such as Cyberlink and Steinberg rely on Asknet’s e-commerce expertise to distribute their products in more than 190 countries. asknet Solutions AG is listed on the Frankfurt Stock Exchange (Ticker: ASKN; ISIN: DE000A2E3707).

Contact
Magda Gajny
+49 (0) 721 / 96458-6116
[email protected]
https://asknet-solutions.com/

30.09.2021 Distribution of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this advertisement.

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